The RTD board approved moving forward Tuesday with redeveloping Denver’s Union Station as a hotel.

The approval came on a 14-0 vote, with director Bill James abstaining, citing a professional conflict of interest. He works for a commercial and residential real estate appraisal firm.

The vote gives Regional Transportation District general manager Phil Washington authority to negotiate with Union Station Alliance for the project to transform the historic building into a boutique hotel affiliated with the Oxford Hotel. He can spend up to $200,000 on outside counsel to help him negotiate the deal.

Many of those who showed up to speak on behalf of Union Station Alliance agreed to let Denver resident Anne Hayes speak on their behalf.

Hayes noted that the alliance took into account the opinions of area stakeholders and that its project will generate more revenue and tax money while activating the building 24 hours a day, seven days a week, 365 days a year. She also said that with the hotel plan, Union Station will become a tourist destination.

“This is a place of hospitality,” Hayes said. “What it says is ‘Welcome to Denver.’ It’s extremely important for tourism. This is a huge revenue generator for our city. To create a building that has a significant draw to it is extremely important.”

Several others who chose to speak in favor of the hotel plan noted the number of jobs it would create.

“We can create our own economic stimulus,” said Floyd Jones, a downtown resident and membership director for the Colorado Black Chamber of Commerce.

No one spoke on behalf of the competing team.

Union Station Alliance member Walter Isenberg of Sage Hospitality said, “We take the responsibility of this landmark very seriously and will treat it with great care.”

The project still needs the blessing of Denver’s Landmark Preservation Commission, which is charged with preserving structures or districts of architectural, historical or geographical significance within the city. And for the project to qualify for $7.5 million that it needs, the National Park Service must sign off on it.

Union Station Alliance has said it will finish the project by the time new transit service opens in 2014.

The team beat out Union Station Neighborhood Co., which proposed a restaurant and market on the main level and offices on the second floor. Several board members have cited the financial-benefit differences between the plans in making their selections.

Union Station Alliance says its hotel plan will pay RTD about $65 million over the 60-year term of the lease and generate $130 million in tax revenue.

Union Station Neighborhood Co., master developer of 19.5 acres surrounding the station, including an underground bus terminal and rail platforms, said its plan would have generated $42.5 million for RTD over the 60 years it would have leased the building. It had not disclosed the estimated tax revenue.

The decision comes after weeks of meetings, many in executive session, in which board members requested more information about each proposal.

Last week, the RTD Financial Administration and Audit Committee, which consists of the full board, voted 9-5 in favor of the hotel plan.

The board swore in 15th member Kathi Williams on Tuesday, making an even split impossible when all members are present. During one previous meeting, the 12 members present were evenly divided over the proposals.

Under both proposals, Union Station’s great hall was kept as a hub for transit users surrounded by restaurants and retail.

The main difference between the plans was that one called for 130 hotel rooms on the second and third floors and the other would have kept the second floor as office space and used the third floor for mechanical systems.

The owners of Boulder’s Sterling University Peaks apartments, who this summer were cited for illegally subdividing 92 bedrooms in the complex, have reached an agreement to settle the case for $410,000, the city announced Thursday.